TWO major tobacco firms have launched legal actions against the UK Government over plans to introduce plain packaging on cigarettes.
Industry giants British American Tobacco (BAT) and Philip Morris International (PMI) both filed legal objections at the High Court in London yesterday.
The cases - which could result in multi-billion pound payouts if successful - rely on claims that the new rules are illegal because they deprive the firms of their trademarks and intellectual property.
The Scottish Government has previously said it will follow the lead of Westminster on the issue, however the initial court action by BAT has only been lodged in London.
A spokesman for BAT warned that, if successful, the London case would form a "persuasive" argument for a similar claim being presented in Scotland if ministers press ahead with the move north of the border.
The spokesman added: "Legal action is not something we wanted to have to consider and is not something we undertake lightly, but the UK Government has left us with no other choice.
"Any business that has property taken away from it by the state would inevitably want to challenge and seek compensation."
In their filings, both companies say that it violates EU law for a company to be able to use its trademark in Europe, but not the UK.
They also argue that the plain packaging law prevents the free movement of goods.
Philip Morris also claim that the change should have been postponed until the European Court of Justice had reached its decision on the matter.
The Department of Health responded to the court action by saying it would "not allow public health policy to be held to ransom by the tobacco industry".
Scotland's public health minister Maureen Watt added: "We do not believe that legal threats from the tobacco industry should stop us from taking action to improve the health of our children, families and communities."
Other firms including Imperial Tobacco and Japan Tobacco International have also vowed to take legal action.
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